Henry Reid represents the FCA to uphold landmark decision in ‘Staley v FCA [2025]’ re: integrity in financial services

The FCA has successfully resisted a legal challenge by former Barclays CEO, Jes Staley, against their decision to ban him from the financial services industry for integrity breaches. Henry Reid acted as Junior Counsel for the FCA in a team led by Leigh-Ann Mulcahy KC of Fountain Court Chambers.

On 26 June 2025, the Upper Tribunal dismissed a challenge by former CEO of Barclays Bank, Jes Staley, to the decision by the Financial Conduct Authority (FCA) that he breached key conduct rules. The case centered on a letter sent by Barclays to the FCA in October 2019, in response to regulatory enquiries about Staley’s association with Jeffrey Epstein. The FCA alleged that Staley had acted recklessly and without integrity when approving the terms of the Letter which, it was said, contained two misleading statements as to the closeness of his relationship with Epstein and the recency of their last contact (the “Statements”).

The precise wording of the Statements were as follows:

• “Jes has confirmed to us that he did not have a close relationship with Mr. Epstein” ; and
• “Jes’ last contact with Mr. Epstein was well before he joined Barclays in 2015.”

The 2023 Decision Notice found he was in breach of three provisions of the Authority’s Handbook, namely Individual Conduct Rule 1 (the requirement to act with integrity), Individual Conduct Rule 3 (the requirement to be open and cooperative with regulators) and Senior Manager Conduct Rule 4 (the requirement to disclose appropriately any information of which the Authority would reasonably expect notice). Staley received a financial penalty of £1.8 million and a prohibition order preventing him from holding senior roles in regulated firms.

Staley referred the decision to the Upper Tribunal, disputing the FCA’s conclusions and the penalties imposed.

Upper Tribunal Findings

In a landmark judgment following a 14 day trial that was the subject of significant media scrutiny the Tribunal found, amongst other things, as follows:

Acting with Integrity
The Tribunal found that the Statements were both inaccurate. The evidence, including numerous personal emails and visits (including post-Epstein’s 2008 conviction), contradicted both claims. The Tribunal concluded that Staley acted recklessly in approving the letter and failed to act with integrity.

Duty of Openness and Disclosure

The Tribunal found that Staley failed in his duty to be open and cooperative with the regulator and to disclose information the FCA would reasonably expect. His approval of the letter breached both ICR 3 and SMCR 4.

Fitness and Propriety

Given the findings on integrity and openness, the Tribunal upheld the FCA’s assessment that Staley was not a fit and proper person to hold senior roles in the financial sector. His actions were inconsistent with the standards expected of individuals at the highest levels of financial oversight.

Upper Tribunal Decision

The Tribunal upheld the prohibition order, recognising the seriousness of misleading a regulator and the potential harm to the integrity of the UK financial system. It did, however, determine a lower level of financial penalty to that sought by the FCA, removing the value of deferred shares which will not now vest.

This judgment has major implications for regulatory expectations surrounding senior managers in the financial sector. It reinforces the critical importance of integrity, transparency, and proactive disclosure in dealings with regulators. The Tribunal highlighted that even indirect misconduct — such as failing to correct misleading statements — can constitute serious breaches of conduct rules, especially when committed by individuals in positions of significant authority.

The decision also underscores the FCA’s emphasis on personal accountability under the Senior Managers and Certification Regime (SMCR). It signals to financial firms and their leaders that associations with controversial figures, if not transparently disclosed and accurately described, can severely damage careers and reputations, and attract stringent regulatory action.

Find Out More

Henry Reid acted as part of a Counsel team for the FCA alongside Leigh-Ann Mulcahy KC and Eleanor Davison of Fountain Court, and Lara Hassell-Hart of 4 Stone Buildings.

Read the full judgment here.

This landmark decision received same-day press coverage, some of which can be found here:

• Financial Times
• BBC News
• Reuters

Henry Reid’s practice covers commercial, corporate and financial services matters with an emphasis on commercial litigation, contentious and non-contentious financial services, sanctions, banking and finance, fintech and regulatory investigations. Since moving to the Bar, Henry is ranked by Legal 500 UK as a “Rising Star” in both Banking & Finance and Financial Services Regulation as well as a Tier 2 Leading Junior in Crypto & Blockchain assets.

News 26 Jun, 2025